Bank Myths #1: The more credit you have, the easier it is to get.

So I remember when I was younger and I use to believe that getting a credit card with a big limit was the way to go, then once you had a big card with a big limit you could go to another bank and ask for a card with a big limit cause the bank down the road just gave you a card with a big limit so why shouldn't they? Don't they want you as a customer?

Well it seems in reality, if your personal income only allows for you to have 5k of credit from a bank, and you have 4k from one bank, if you don't lie on your application form, the other bank probably won't even give you a credit card, or they *might* give you 1k. Interesting, then if you were to get a loan, they credit often can eat into what you can borrow anywhere from a 1:1 or 2:1 ratio. So if you have a 10k limit they will lend you 10 to 20k less etc.

So what bought up this post? I had a letter from my bank the other day offering to double my limit, interesting, but they also want to charge me more fees if I accept. However on the letter it also has an easy option to lower your limit, which I think is excellent and a very responsible thing to do, I've never seen my other bank do that (I only bank with 2 banks.)